Tax cut deal could create 3 million jobs

The Center for American Progress, a liberal research organization, has crunched a back-of-the-envelope estimate. Its numbers, shown right, are based on the models used by the Congressional Budget Office and the economist Mark Zandi to project the bang-for-the-buck of various kinds of stimulus.

“We estimate that the deal as described would save or create 2.2 million jobs, excluding jobs associated with the extension of the broader-based portions of the Bush tax cuts on which all parties were agreed,” write Michael Linden and Michael Ettlinger of the Center for American Progress.

Including the broader so-called middle-class tax cuts brings the total number of jobs created to 3.1 million.

Just How Stimulating Is the New Tax Cut-Jobless Benefit Deal? [Economix]